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APEX-Human capital index is an analytical tool which analyses the value of human capital and its related aspects based on human capital and financial parameters. Human capital parameters constitute ...
APEX-Human capital index is an analytical tool which analyses the value of human capital and its related aspects based on human capital and financial parameters. Human capital parameters constitute for 2/3rd part of the index while the remaining 1/3rd Weightage is determined by financial parameters. Each parameter is measured on a scale. The range of scale is determined by the criticalness of the ratio to the index. A total of 300 points is the Weightage of the index, (200 from Human Capital and 100 from financial parameters) and the components are clubbed into 7 key parameters. Organizational performance is measured on 300 points and the output points are converted in to rating which ranges from AAA to D, wherein AAA is the highest rating and D is the lowest rating. The APEX-HC Index’s 7 key parameters measurement is based on the composite score of each key parameter and finally a response is assigned to it. The assigned response is the representation of numerical percentage figure to simplify the ranking. Ranks range from “Very Good” to “Very Low”, where Very Good is the top end and Very Low is bottom end rank. In order to carry out the valuation of individual organization, the index needs at least two consecutive years’ human capital and financial data. Each year’s rating and key parameters’ ranking is evaluated and compared to come to the conclusions as in which year performance is better, which part of business need fresh investment and where the organization needs to improve etc., are some of the parameters that are considered.